Fahim ShahSWOT Analysis of Airbus (Airbus SWOT)
This is a comprehensive SWOT analysis of Airbus. It provides the readers with useful insights into some of the strengths and the weaknesses of Airbus. It also examines several growth opportunities and threats that may have strategic implications for the company. Airbus is a European multinational company, headquartered in the Netherlands, though its head office is in France.
Strengths of Airbus
Airbus is an established global leader in the aerospace sector and a leading manufacturer of commercial aircrafts. In fact, it is the largest aeronautics and space company in Europe (Airbus, 2021).
Airbus has manufacturing and design facilities in several countries around the world including Germany, United Kingdom, Spain and France. It has been performing well in all of its product categories which include space and defence, commercial aircrafts, missiles, helicopters and low-cost carriers.
Airbus works with over 12,000 direct suppliers from around the world. Its aircraft and helicopter final assembly lines are spread across Asia, Europe and the Americas. Its order book has seen a sixfold increase since 2000 (Airbus, 2021). It delivered 863 airplanes in 2019 alone which is almost double the number delivered by its archrival, Boeing (Team, 2020).
Airbus has launched Blue 5, which deals with areas of environmental focus such as saving energy, reducing waste, reducing CO2, reducing volatile organic compounds and saving water. It has produced new aircraft models which are more fuel efficient and have more comfortable seats for its passengers.
Airbus has a strong reputation for being highly innovative in design and technology. The Airbus A350 XWB is an example of the company’s approach towards continuous innovation.
Weaknesses of Airbus
Airbus has several weaknesses. For instance, its sale of helicopters has seen a decline recently as it faces more competition. Likewise, it has a backlog in delivering aircrafts in comparison to the number of orders it receives. Its main competitor Boeing has a lesser number of backlogs of its orders.
The corporate image of Airbus has been affected by several controversies. For instance, it was accused of bribery and corruption, and indeed reached deals to settle allegations that it had paid bribes to a number of airlines from many countries.
Opportunities for Airbus
Opportunity is an important area of discussion in the SWOT analysis of Airbus. Surely, the demand for air travel is going to increase in the coming years as the world has almost come out of lockdowns. Therefore, Airbus has an opportunity to secure more commercial aircraft orders. Likewise, it has an opportunity to grow in developing economies and take advantage of low manufacturing expenses.
Airbus has an opportunity to focus more on technological innovation which will help it in gaining a competitive advantage over other competitors. It also has an opportunity to improve its space and defence segments of the business and become a market leader in the industry.
Threats to Airbus
Airbus deals with various suppliers who are located around the world. They produce various parts which are needed for the manufacturing process. Though this is more profitable, there is always a risk in delays of supplies, which can affect the manufacturing process. Likewise, adverse political and economic scenarios can affect the manufacturing process as the company’s suppliers are in different parts of the globe.
Airbus faces competition from Boeing and constantly faces the threat of losing its market share. Other notable competitors are Bombardier and Embraer, Lockheed Martin, General Dynamics, and Commercial Aircraft Corporation of China.
Lawsuits can be costly as well. For instance, it agreed to pay a record £3 billion in penalties after admitting it had paid huge bribes to secure contracts in 20 countries (Pegg and Evans, 2020).
We hope the article SWOT analysis of Airbus (Airbus SWOT) has been a good read. You may also like SWOT analysis of Boeing (Boeing SWOT). Other relevant articles for you are:
SWOT analysis of Emirates Airline
PESTEL analysis of the Netherlands
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Last update: 23 June 2021
References:
Airbus (2021) We are Airbus, available at: https://www.airbus.com/company/we-are-airbus.html (accessed 21 June 2021)
Pegg, D. and Evans, R. (2020) Airbus to pay record £3bn in fines for ‘endemic’ corruption, available at: https://www.theguardian.com/business/2020/jan/31/airbus-to-pay-record-3bn-in-fines-for-endemic-corruption (accessed 20 June 2021)
Team, T. (2020) How Airbus has grown over the years to dethrone Boeing as the largest commercial aircraft maker, available at: https://www.forbes.com/sites/greatspeculations/2020/01/06/how-airbus-has-grown-over-the-years-to-dethrone-boeing-as-the-largest-commercial-aircraft-maker/?sh=4ba499573a59 (accessed 23 June 2021)
Author: Fahim Shah
Fahim Shah has been working in the UK as a visiting lecturer in Business and Tourism for the last 10 years. After completing a Bachelor’s degree in Business and Marketing, he went on to gain an MBA from the University of Bradford, the UK. He is a Fellow of Advance HE (FHEA) and a full member of the Association of Business Executives (ABE).
M Rahman
